Which of the Following Procedures Will Usually Be Performed by the Auditor

question 85

Multiple Choice

Which of the following procedures will usually be performed by the auditor to determine if obsolete inventory exists?

• A)Confirmation of inventory with customers.
• B)Footing the inventory subsidiary ledger.
• C)Tracing inventory ordered by the client to receiving reports.
• D)Analysis of inventory turnover and sales reports.

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Definitions:

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and within a given time period.

Money Supply

The total fund of money available in an economy at a fixed point in time.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Aggregate Demand

The comprehensive demand for every type of good and service within an economy, identified at a given price level and time period.